India's Critical Minerals and Clean Energy Goals
India's ambition to lead globally in clean energy and sustainable growth hinges on securing critical minerals like lithium, cobalt, and Rare Earth Elements (REEs). These minerals are crucial for technologies driving the green transition, such as electric vehicles (EVs), solar panels, wind turbines, and energy storage systems.
Key Objectives
- Achieve 500 GW of renewable energy capacity by 2030.
- Reach net-zero emissions by 2070.
- Reduce reliance on imported critical minerals amid global competition.
Challenges and Opportunities
- India's EV market is expected to grow at a CAGR of 49% from 2023 to 2030, driven by government initiatives like the Electric Mobility Promotion Scheme (EMPS) 2024.
- India's battery storage market, valued at $2.8 billion in 2023, is anticipated to grow with increased renewable energy adoption.
- Heavy reliance on imports for critical minerals exposes India to supply chain vulnerabilities, with nearly 100% reliance on imports for lithium, cobalt, and nickel.
- China's control over 60% of global REE production and 85% of processing capacity underscores the urgency for India to build a self-reliant supply chain.
Domestic Mineral Potential and Policy Initiatives
- India has vast untapped mineral resources, including lithium in Jammu and Kashmir and Rajasthan, and REEs in Odisha and Andhra Pradesh.
- The National Mineral Exploration Policy (NMEP) and the Mines and Minerals (Development and Regulation) Act have accelerated exploration efforts.
- Recent auctions of 20 critical mineral blocks have attracted significant bids, indicating growing investor interest.
Building Capacity and Infrastructure
- To increase REE production from less than 1% globally, India must enhance processing and refining capacity through public-private partnerships.
- Investment in domestic mining is central to India's strategy, although challenges like high costs and regulatory hurdles remain.
- The National Critical Mineral Mission (NCMM) aims to strengthen value chains across exploration, mining, processing, and recovery.
- Infrastructure upgrades are essential, including mechanized mining equipment, automated processing plants, and advanced recycling facilities.
Recycling and Circular Economy
- India generates about four million metric tonnes of e-waste annually but recycles only 10% formally.
- Advanced recycling facilities and public-private hubs could enhance mineral recovery and reduce environmental impact.
Path Forward
- Operationalizing mining leases, investing in mines, and upgrading recycling facilities should be prioritized.
- Recent policy measures, including the Battery Waste Management Rules, 2022, aim to support recycling efforts.
- Strong state support, clear policies, and public-private collaboration are crucial for building a robust mineral ecosystem.
India's clean energy transition and industrial growth rely on securing critical minerals, which will also advance its global position as a leader in the green economy.